Accounting records for Rich’s Shopping Bags yield the following data for the year ended July 31, 2011:

Requirements
1. Journalize the inventory transactions for the company using the data given.
2. Report ending inventory on the balance sheet, and sales, cost of goods sold, and gross profit on the income statement.

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Inventory, July 31, 2010.... $ 7,000 Purchases of inventory (on account).. 49,000 Sales of inventory - 76% on account; 24% for cash (cost $40,000).. 78,000 Inventory, July 31, 2011.... ?